ORIX JREIT (8954) Q2 2027 earnings summary

Executive summary

• 49th fiscal period ended Aug. 31, 2026, with DPU of ¥2,504, ¥54 above forecast and ¥477 above the 3% annual-growth-plan target; payout ratio was 92.6%.

• Existing-property NOI rose 2.1% annualized period on period, or 4.0% excluding Osaka hotels; rental earnings rose 0.7%, or 2.6% excluding Osaka hotels.

• Asset replacement since 25/8 is intended to improve portfolio quality and support growth; acquisitions and dispositions added ¥4.37bn in annual NOI.

Financial highlights

• Operating revenue was ¥31,807m, operating income ¥17,091m, pretax income ¥14,944m and net income ¥14,921m in 26/8.

• Rental revenue was ¥25,537m; gains on property sales were ¥3,514m. NOI was ¥20,151m, FFO ¥15,623m and AFFO ¥13,086m.

• DPU was ¥2,504, up ¥90 from 26/2 and ¥54 above the 26/8 forecast of ¥2,450; total distribution was ¥13,822m.

Outlook and guidance

• DPU forecasts are ¥2,470 for 27/2 and ¥2,300 for 27/8; the strategy targets annual growth of at least 3% without relying on disposition gains.

• Forecast operating revenue and net income are ¥29,020m and ¥12,838m for 27/2, and ¥28,701m and ¥11,895m for 27/8.

• Forecast NOI is ¥21,042m in 27/2 and ¥21,500m in 27/8; rental revenue is projected at ¥25,683m and ¥26,160m, respectively.

• Both DPU forecasts include partial internal-reserve reversals; 27/8 reflects no Hamamatsu Act Tower disposition gain and a temporary rent-receipt timing effect.

• ROE targets are 6% or higher excluding disposition gains, with an 8% target supported by earnings growth and disposition gains.